Two studies published in the New England Journal of Medicine link the risk of breast cancer to alcohol consumption. Young women who have nine drinks per week were reportedly 150 percent more likely to develop breast cancer. Considering the market for alcohol, an economist would predict a movement
A) up the demand curve as quantity demanded falls.
B) up the supply curve as the demand curve shifts.
C) down the supply curve as the demand curve shifts.
D) down the demand curve as quantity falls.

Question

Quizplus · Accepted Answer

The studies linking alcohol consumption to breast cancer risk would likely lead to a decrease in demand for alcohol, causing the demand curve to shift left. As a result, there would be a movement down the supply curve as the new equilibrium is established at a lower quantity and price.

Two Studies Published in the New England Journal of Medicine